KUALA LUMPUR: The ringgit opened higher against the US dollar today as the greenback weakened on a softening US economic outlook and amid uncertainties over reciprocal tariffs scheduled to be announced by the United States later today, said an analyst.
At 8 am, the ringgit climbed to 4.4300/4400 against the greenback from last Friday’s close of 4.4330/4355.
Malaysian markets were closed for the Hari Raya Aidilfitri public holidays on Monday and yesterday.
The White House has confirmed that US President Donald Trump will impose new tariffs today, but no details have been provided on the size and scope of the reciprocal tariffs.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said recent weaker US economic data also pointed to a softening American economy, which has led to the weaker greenback.
The US ISM Index for the manufacturing sector fell below the 50-point demarcation line to 49.0 points in March. Additionally, the number of job openings there declined to 7.568 million in February from 7.762 million in January
“Clearly, the US economy is softening as businesses adjust themselves against the import tariff hike that could lead to a higher cost of doing business,” he told Bernama.
He reckons that the USD/MYR could range between RM4.43 and RM4.44 as traders and investors brace themselves for a more volatile session in the currency markets.
The ringgit traded mostly lower against major currencies.
It edged down against the Japanese yen to 2.9585/9653 from 2.9438/9456 and weakened against the euro to 4.7822/7930 from 4.7761/7788 but strengthened against the British pound to 5.7240/7369 from 5.7407/7440 last Friday.
The local note was mostly higher against ASEAN currencies.
It increased against the Thai baht to 12.9521/9908 from 13.0390/0533, gained against the Singapore dollar to 3.2956/3036 from 3.3040/3061 and edged up against the Indonesian rupiah to 265.2/266.0 from 267.7/267.9.
However, it fell against the Philippine peso to 7.74/7.76 from 7.72/7.73. – Bernama
